Capital outflow hit IDR 7.77 trillion at the end of September 2023
JAKARTA. Capital outflow recorded at the last week of September (25-27/9) amounted to IDR 7.77 trillion, with the highest net sales brought in by Government Securities.
In the official release yesterday (1/10), Head of Communication Department of Bank Indonesia, Erwin Haryono, mentioned that the capital outflow consists of net sales of IDR 7.86 trillion in the Government Securities market, net sales of IDR 2.07 trillion in the stock market, and net buy of IDR 2.16 trillion in Rupiah Securities of Bank Indonesia.
Until September 27, 2023, Bank Indonesia (BI) also reported capital inflow directed to Government Securities market of IDR 67.29 trillion, while capital inflow directed to Rupiah Securities of Bank Indonesia reached IDR 3.27 trillion. In the same period, foreign investors stepped out of the stock market with total transaction worth IDR 5.27 trillion.
In line with this growth, Haryono then mentioned that the credit default swap (CDS) of Indonesia for the past 5 years, until September 28, 2023, rises to 91.84 bps, increasing from 87.69 bps seen on September 22, 2023. The yield of Government Securities for the past 10 years also shifts to 6.29% last Friday (29/9) from 6.86% on the previous day (28/9).
CDS reflects the level of premium paid by bondholders to guarantors to ensure full payment of securities if obligors went to default. The higher CDS is, the higher the perception of risk over said securities instrument. (AM/ZH)